First BanCorp. (FBP) Hits a 52-Week High, Can the Run Continue?

Have you been paying attention to shares of First BanCorp. FBP? Shares have been on the move with the stock up 9% over the past month. FBP hit a new 52-week high of $8.32 in the previous session. First BanCorp. has gained 59.2% since the start of the year compared to the -0.7% move for the Finance sector and the 11.8% year-to-date return for its peer group.

What's Driving the Outperformance?

The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on April 27, 2018, First BanCorp. reported EPS of $0.14 versus the Zacks Consensus Estimate of $0.09.

For the current fiscal year, First BanCorp. is expected to post earnings of $0.57 per share on $607.1 million in revenues. This represents a 14% change in EPS on a 9.6% change in revenues. For the next fiscal year, the company is expected to earn $0.62 per share on $621.6 million in revenues. This represents a year-over-year change of 7.89% and 2.39%, respectively.

Valuation Metrics

First BanCorp. may be at a 52-week high right now, but what might the future hold for FBP? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.

On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.

First BanCorp. has a Value Score of B. The stock's Growth and Momentum Scores are C and C, respectively, giving the company a VGM Score of B.

In terms of its value breakdown, the stock currently trades at 14.3X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 14.2X versus its peer group's average of 16.5X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.

First BanCorp. Price and Consensus

First BanCorp. Price and Consensus | First BanCorp. Quote

Zacks Rank

We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, First BanCorp. currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.

Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 and Style Scores of A or B, it looks as if First BanCorp. meets the list of requirements. Thus, it seems as though FBP shares could still be poised for more gains ahead.

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